Alcoa, the largest aluminum producer in the US, is on the verge of selling its idle Massena East smelter in upstate New York to New York Digital Investment Group (NYDIG), a Bitcoin mining firm, as part of its efforts to offload unused assets and capitalize on the growing demand for energy-intensive industrial sites. According to CEO Bill Oplinger, the company is in advanced negotiations and expects the deal to be finalized by mid-year, as reported by Bloomberg.
The smelter, located along the St. Lawrence River, has been inactive since 2014 due to high operational costs and global competition. However, its appeal lies not in its metal production capabilities, but in its existing power infrastructure. Aluminum smelters require massive amounts of electricity to operate continuously, and when they shut down, the dedicated substations and transmission lines remain.
This infrastructure can significantly reduce the time it takes for bitcoin miners and data center developers to secure access to the grid. Additionally, the Massena East site has access to low-cost, carbon-free hydropower from the New York Power Authority, making it an attractive location for companies seeking to minimize their environmental footprint.
This deal is part of a larger trend, as seen in Century Aluminum's recent sale of a Kentucky smelter to TeraWulf, which plans to build a digital infrastructure campus supporting high-performance computing and AI.